State whose capitol gift shop sells a plush Spuddy Buddy (5)

I believe the answer is:

idaho

(Other definitions for idaho that I've seen before include "somewhere in the US" , "US state, capital Boise" , "One of 22 Across, capital Boise" , "Northern US state" , "silver-mining state" .)

I've seen this clue in The Wall Street Journal.

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